Odisha EOW Arrests Another Accused in ₹4.13 Crore Loan Fraud Case
The Economic Offences Wing (EOW) of the Odisha Crime Branch arrested another suspect in the Rs 4.13 crore bank loan fraud case on Monday.
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Bhubaneswar: The Economic Offences Wing (EOW) of the Odisha Crime Branch arrested another suspect in the Rs 4.13 crore bank loan fraud case on Monday.
Md Iftekhar Asif Khan, the person arrested, has been identified.
On a complaint from the bank, the EOW arrested two former employees, Sheikh Abdul Hayee and Prakash Kumar Mahapatra of Urban Cooperative Bank Ltd, and Md Mustakim Raza, a former LIC agent, for fraudulent loan sanctioning between 2019 and 2021. Hayee was the bank's Nuapatna Branch Manager, and Mohapatra was the senior assistant.
In collusion with Raza, Md Sarfaraj Jawed, and Khan, they fraudulently sanctioned 25 loans in exchange for fake/forged LIC policies. According to an EOW release, 8 loans totaling Rs.4.13 crore could not be recovered, but they continued to renew the loans by sanctioning new loans.
Khan had taken out three loans totaling Rs 47 lakh against a single LIC policy, claiming to be the life assured when the policy was actually in the name of one Pawan Kumar Gupta. It was added that all three loanees had given the same policy as security by changing their names as life assured.
After Hayee retired last year, the branch's fraud came to light a few months ago. When the loan accounts became non-performing assets, the bank conducted an audit, which was completed a few months ago, and discovered the scam, which resulted in Mahapatra's suspension.
The case is being investigated further, according to the release.
